Econ Chapter 4

Personal Distribution of Income

The manner in which the economy's personal or disposable income is divided among different income classes or different households or families

Functional Distribution of Income

The manner in which national income is divided among the functions performed to earn it (or the kinds of resources provided to earn it); the division

Durable Goods

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Nondurable Goods

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Services

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Plant

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Firm

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Industry

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Sole Proprietorship

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Partnership

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Corporation

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Stock

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Bond

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Limited Liability

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Principal-Agent Problem

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Monopoly

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Transfer Payments

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Market Intervention

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Taxation

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Externality

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Neg Externality

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Legislation and specific taxes

how to fix neg externality

Positive Externality

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Subsidize consumers and suppliers and provide goods via gov

how to fix pos externality

public goods

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quasi-public goods

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free-rider problem

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unemployment and inflation

promote stability because of

gov purchases

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personal income tax

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marginal tax rate

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average tax rate

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payroll taxes

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corporate income tax

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sales and excise taxes

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property taxes

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